>> you're happy? >> yeah, i'm enjoying everything. >> larry: one more clue on the emmys, saturday night, sunday night. one more clue? >> some music. >> larry: music will be on the show. >> there you go. >> larry: when you hear music on the emmys -- you heard it here. he'll be all right. the white wagon is out front. >> thank you. buying influence and access in washington. some of the biggest names, democrats and republicans taking money unlimited amounts of money from big companies with business before congress. sound outrageous? what if i told you it is perfectly legal? we'll show you how it's done and how charities of all things play a part. we're naming names, keeping them honest. new polling shows republicans cruising toward a big victory this fall. our campaign coverage kicks into high gear tonight. the most expensive house race of the year, do you know which one it is? michele bachmann. selling sex online, under pressure from law enforcement in

many states, craigslist removes their adult services section saying they've been unfairly targeted. jeffrey toobin on the legality of running them and the constitutionality of trying to stop them. we begin tonight with a surprising way that politicians had discovered they can look good and big companies have learned they can buy influence in washington. what is this legal loophole? we're talking about charities. at least two dozen charities according to the new york times, set up by individual democratic and republican lawmakers. big name politicians who big companies want to be in bed with. let's be clear, these charities seem to do good work. why do so many big companies want to donate to little foundations that just happen to be setup by congressmen. you're about to find out. remember when the democrats took over and promised the culture of corruption in d.c. was done? this is what nancy pelosi said

back then. >> this all comes back to the american people. they have to have confidence that congress is here to work in the people's interest, not the special interests. they have to know, and i honestly believe, that you cannot advance the people's agenda unless you drain the swamp that is washington, d.c.. >> drain the swamp. she was referring to scandals like the one involving former house majority leader tom delay. he had a charity, the delay foundation for kids. his foundation raked in big money from bringing corporate donors, many of which had had business before the house. donations not subject to campaign finance limits and tax deductible to boot. despite all the handwringing and promises by congressmen to change -- take a look, this is joe bacca he's on the website of a california energy company,

he's the one in the middle at a golf tournament organized by the charity. the charity is the joe bacca foundation. the charity allows him to get his name out there to potential voters. he seemed to be doing good work. the guys on the other side of him, by the way, if that picture are sponsors of the golf tournament. just after the event congressman bacca's office isn't this letter to the department of energy, lobbying them to approve loan guarantees rentec was seeking. coincidence? take another look, here's orrin hatch of utah, he helped establish a charity which holds a fund-raiser every august. in 2008 and 2009 a drug company called watson pharmaceuticals ponied up the money, they were embroiled in a dispute with the ftc. this year, mr. hatch went to bat for them. is that a coincidence?

here's james clyburn, his scholarship foundation has a list of corporate sponsors too long to say, can you see some of them here. one of them comcast, which is trying to merge with nbc donates to the elijah cummings program in israel. is it just a coincidence? this past june, the fcc got this letter. disclosure forms that corporate lobbyists have to submit under rules put in place in 2007 to help drain the swamp. guess what, those same rules bar the congressional officers who collect those forms from examining them to see if they're complete and accurate. no one in congress is really checking. eric lipton is the reporter who broke this story in the times.

also with us, mickey edwards, currently director of the aspen institute, rodel fellowships. appreciate both you being with us. the charities are all legit. they seem to be doing good work. what is wrong with this? >> i think what if shows, is that washington is a creative place. there's billions of dollars at stake, these corporations have again des they want to push, and they are constantly looking for ways they can work within the rules to influence members of congress. and they've discovered that one way is to give donations to charities that they have founded that they care about, and that impresses the members of congress, and there seems to be a correlation between those donations to those charities and the positions frequently that members of congress take. >> for the congressperson, besides just doing good work in their community, it's another way of campaigning, it lets them

get out there, get local press coverage in a positive way, right? >> it serves a lot of purposes for the corporation. it's a tax deductible gift. they're supporting causes that are quite worthy. breast cancer, college scholarships. for the member of congress, joe bacca, for example, he has -- he gives -- there are joe bacca t-shirts, baseball caps for his foundation, and it's essentially a permanent campaign for him. so everyone to some extent is served. but there's a certain cynicism here, here you have these companies, and you sort of wonder, charity is about giving for the good of the cause. is it about pursuing your corporate agenda? and you -- that's the thing i think that's the rub, is this really about their concern for these charitable causes? or is this about pushing their agenda in washington? >> is it a coincidence that all these big companies who have other forms of giving just happen to be giving large sums of money to little foundations

set up by congress people who they are going to be ruling on issues that are of great interest to the companies? >> anderson, you know it's not a coincidence, it's not a coincidence at all. what happens is, the company that wants to get in good with somebody who either chairs a committee or is an important player in congress says here is a way that i can make that person identify with me. when i call on them later, they're going to know me, they're going to know my family. we've built up a relationship over time. and i'm going to ask them to help me, if there's no reason not to, sure, they're glad to come on board, and they're glad to say, you know, you're a and it's not insidious in terms of being malevolent, it's a way of trying to build that relationship between a member and a funder to the mutual advantage of both. and what's left out is the

mutual interest of the citizens. >> it is buying influence? >> it is absolutely buying influence. >> there are direct links between these companies that are donating and issues it this they -- that these congress people are going to be ruling on, correct? >> lisa markowski, her family set up this foundation, but it's all oil companies that are donating. she's the ranking republican on the committee that decides will they allow offshore drilling. joe bacca's donors include coca-cola who don't want to see regulation on the vending machines in schools. jim clyburn is involved in nuclear issues. and the nuclear companies are giving big money to him. the airlines, the telecommunications companies.

so there's a correlation that seems to be consistent in these donations that again makes you wonder, is this about politics or is this about charity? >> it's legal, it's borderline on the ethics department, how do you stop it, how do you change it? >> well, what you have to do is a couple things. partly what you're doing here, what eric has done in the new york times. but you also have to do some changing of the ethics rules, for example, if it is not possible now to look at the ethics rules and say, i cannot take money directly or indirectly from somebody who has concerns. then the rules need to be changed. it's easy enough to do. the fact is, it's not just a matter of perception. it's a matter of having other factors come into play when a member of congress is deciding what to do for a company, what to do for a friend. and the public interest may or may not be served. the ethics rules can be changed

if -- if nancy wants to drain the swamp, she's in a position, she's speaker, she can get the rules of the ethics committee changed and drain the swamp. >> if congress people wanted to raise money for charities, there are also plenty of charities out there, they don't necessarily have to create their own? >> true. and donations made in honor of members of congress that go to charities that are completely unrelated to those individual members, that does happen as well. you know, they're -- >> if you're just raising money for some other charity, it doesn't have your name on it, it's not as big a benefit to you. >> you can't then have the -- present the check as many of these members of congress, they collect the funds and present the check, and they get a double bonus because they can appear to be the hero for the community that's delivering more money. >> eric, your reporting on this continues to be outstanding, and you focused on this story in the new york times in great detail today. appreciate you being with us. thank you very much. >> thank you. let us know what you think

about this during the live which the right now. coming up, election season kicking into high gear, new evidence will be big ways for republicans. behind the scenes of the most expensive house race this year. do you know which one it is? michele bachmann running hard. partly talking to reporters. a strategy we're seeing more and more of this year. why craigslist took down the adult services ads this weekend. is it being censored as they claim on their site. should prostitution be allowed? or should prostitutes be allowed to sell sex online? so w are over a thousand people a day switching to chevrolet? room for eight a all sorts of space behind the third row. they just thought of everything. it just feels like a really solid car. that should come in handy. it's the chevrolet summer event and anyone can get the traverse they want. nah-uh... this one's mine. get 0% apr for 60 months on the 2010 traverse with an average finance savings of around fifty seven hundred.

the switch begins at chevydealer.com.

[ male announcer ] an everyday moment can turn romantic anytime. and when it does, men with erectile dysfunction can be more confident in their ability to be ready with cialis for daily use. cialis for daily use is a clinically proven low-dose tablet you take every day, so you can be ready anytime the moment's right. ♪ tell your doctor about your medical condition and all medications, and ask if you're healthy enough for sexual activity. don't take cialis if you take nitrates for chest pain, as this may cause an unsafe drop in blood pressure. [ man ] don't drink alcohol in excess with cialis. side effects may include headache, upset stomach, delayed backache, or muscle ache. to avoid long-term injury, seek immediate medical help for an erection lasting more than 4 hours. if you have any sudden decrease or loss in hearing or vision, stop taking cialis and call your doctor right away. [ male announcer ] ask your doctor if cialis for daily use is right for you.

for a 30-tablet free trial offer, go to cialis.com.

he was already at the state fair. the minnesota state fair is a huge deal in this state. high-profile politicians running

for office don't dare mess it. running the show means bending her time exclusively with those she know she can count. they love her and she lets them. right now she is rushing to be a guest on a christian radio station. >> i believe like this from conception until natural death. i want to respect life at every age. >> she has spent a lot of time at despair over the years because she and her husband raised five children and 23 foster children. they want all in the house at the same time but quite the accomplishment. they sent their foster children to public school and in many occasions, they did not like what their children were learning there. she made the decision to run for school board. she lost the election. but her political career respond. right d wrg, with us or not with us. >> hi, how are you? thank you.

>> reporter: speed walking in heels through political mud, she gives as much as she gets. next stop, a national radio talk show, where she'll serve up more red meat for her core. we are right. and the president of washington are wrong. >> he's governed as a hard left liberal. that's what the american people are opposing. >> this is where i love to go. it's so much fun. >> reporter: the american people she's absolutely certain she speaks for them, because she says god called her to run for congress. rushing for the media outlets that transmit her views without question as priority, for members of the press who may have different questions, a different treatment. the bachmann campaign thinks there are many in the news media out to get her. she's been a guest on this show. jason lewis is one of the people who michele bachmann will talk to and she's talked to him for many years. >> the words going to get out

there, and it's not the walter cronkiteir remark we are the gatekeepers of the media, and if you don't do the interview at the new york times or cbs, you are stifled. it's not the case any more. >> reporter: her conservative views are lock step with theea party. it's why she went to glenn beck's rally in washington. she's carrying the flag for the tea party nationally and losing touch with minnesota. bachmann is now emphasizing taxes and the economy. this is her latest campaign spot. >> i know, i know, it's state fair time, and you don't want to hear about politics. tarryl clark voted to raise taxes on your corn dog, deep fried bacon and beer. >> reporter: she says the ad is misleading, she said residents should have a vote themselves. she did not vote herself t raise their taxes. do you think she's a fair campaigner?

>> i think she has her own way of doing things. i've never seen her do anything else. >> reporter: michele bachmann stands by her ad and eventually did agree to talk to me. but only two questions. >> we're polar opposites, she's voted for every big increase spend bill there is. >> reporter: the polls show bachmann in front, there's other polling that shows they are within single digits. the bachmann party won't tell us what their numbers are, they just say they're strong. bachmann is speeding off again, she will ignore those who do not agree with her. >> you are insane, lady. could anybody believe the crap that comes out of her mouth? >> reporter: in search of those who do. before the day ends, she will do more interviews with people she trusts, people who won't challenge what she has to say. for michele bachmann this is a righteous cause.

gary tuchman, st. paul, minnesota. kicking off our 2010 campaign coverage tonight, john king in political, david gergen, and john ridley and gop strategist ed rollins. john king, you like to get interviews with a lot of politicians, it seems we're seeing more and more people only talking to outlets they believe are on their side. jan brewer is another prime example of someone doing this very same thing in arizona. >> especially as you get closer and closer to the election, anderson, you will find that to be true. i talked to michele bachmann several times in washington. when you get closer to election day, you're trying to identify your most ardent supporters, trying to turn them out, and trying to stay away from controversy. the bachmann race is potentially competitive, she's going to try to preach to the choir and get

support as much as she can. you'll see it on the democratic side too, she's not alone. >> it's definitely on all sides, is it also something about a lot of new people entering in these races, a lot of tea party activists entering these races who don't want to find themselves in a challenging situation? >> sure, there's a whole new constituency out there, it's called the tea party. many were pro supporters in '92. many new candidates running against incumbents, they're untested. you want to talk to people that -- this is about converting, this is about energizing, so you talk to people that basically are supportive of yo and there's so many vehicles today that will do that, both internet, ta radio, television, what have you. the reality is, network television doesn't necessarily do it for you. >> to the point of someone in the bachmann campaign, he's kind of right, there aren't any gatekeepers, and anything you say gets out there in one form or another. >> it certainly does, and you

make one little mistake and you'll be amplified so quickly now through the internet. this whole trend of candidates no longer talking to the press, we've seen that this the presidential politics for the last two or three caaigns as well. >> we're going to talk to john ridley in a moment, we have to take a quick bak, our coverage continues. after the break, we have new polling, pretty grim news for democrats to talk about. also ahead, breaking news, hermine gaining strength coming ashore. [ female announcer ] fact: the medicine in children's advil® is the #1 pediatrician recommended pain reliever for children. plus, children's ail® brings fever down faster than children's tylenol®. choose children's advil®. relief you can trust.

you've heard the phrase pick your poison. new polling shows that 49% of americans have an unfavorable view of democrats, and 49% have the same view of republicans. when it comes to actually voting, the same poll suggests people are choosing between the two and choosing republican. 52% of americans say they prefer a republican to a democrat in their congressional district. the margin is bigger nearly 2 to 1 among independents. back with our panel. john ridley, aot of people have said the tea party is going to put the democrats back into play. is that just wishful thinking in their part? >> i think it will put some into play. harry reid was dead, buried and gone. now he has an opportunity. i don't think the democrats can

assume every one of these races can be put on, they're the extreme, you can't vote for these individuals. clearly, the numbers you read, people are frustrated, angry. they don't like either party. they tried the democrats for a while, they're going back to the republican ares. you don't have much of a place to go in a two-party system. >> the president is on a big push all this week about jobs. people seem to blame republicans over democrats for our current economic problem. >> that's because the democrats are in charge. when you're frustrated you take it out on the party in power. the president's power almost always historically suffers in the midterm election, especially the first one. the democrats have run congress for the past few years so they're in charge, you're right, the number blaming the republicans, the percentage has ne up a little bit, which would suggest all the democratic ads arou the country, the president's message may be breaking through a little bit.

the democratic number for blame has gone up too. american people blame both parties, maybe the republicans a little more, but there are a lot more democratic incumbents on the ballot in eight weeks. the party in power gets punished. >> democrats are in worse shape now than they were at the beginning the summer. do you think things are always going to be this bad, given the economy? >> the last two summers, an anderson, the democrats have lost control of the message over the summer, they did it last year with the town halls and the health care debate, and this year they've lost control of the argument over the economy, and that's why you see democrats now starting to localize races instead of making national arguments in many of these races, while the republicans want to nationalize this. i think that overall, the democrats have lost ground over the last 60 days, you take -- you go back to the tea party, rand paul in west virginia, we thought at one time maybe he

would be in trouble. he's opened up a double-digit lead, there's a tea party candidate. >> there's another great example of not talking -- after he gave that controversial interview to rachel maddow there was suddenly radio silencfor him. >> he learned and every one of these tea party candidates have taken a lead. the only one that's in a real race is angle and she's dead even with reid. the bottom line here is whose side turns out, the issue that the democrats have pushed the health care, they pushed an $850 billion deficit. both those are very unpopular, both of them don't think they've worked. if you have a choice between someone you are not sure of and someone you are sure is going to make the situation worse for you and yo kid you're going to vote for the republican. >> i wanted to play something the president said today in a speech. targeting john boehner, let's listen. >> and the republican who thks

he's going to take over as speaker -- [ crowd booing ] >> i'm just saying it's his opinion. he's entitled to his opinion. when he was asked about this, he dismissed those jobs as gornment jobs that weren't worth saving. >> does it make sense for president obama to be talking about john boehner? >> it makes sense for him to be talking about john boehner if he es evidence it his side is not motivated, energized. i was looking at polling data tonight that says 33%, one third of union households plan to vote republican for congress this year. if that happens, that's re-creating -- ask ed rollins about the old reagan democrats. they decided their party had become too liberal. if that happens to this president this year, if 33% union households vote republican

for congress, then john boehner am be the next speaker of the house. >> john boehner is not known by the country. the president elevates him. what the president has done is become the ultimate partisan, i promise you over the next eight weeks, his negatives are going to get higher and he will diminish himself and his party. >> you both have seen in white houses, a president who going into midterm elections faces a tough battle and different presidents react differently, jimmy carter, ronald reagan, bill clinton. how do you think -- if the house goes back to republican, david, let's start with you, how do you think that affects president obama. what changes? >> well, in the first place, he's not going to be able to get his liberal agenda through. that's going to be finished. the question is, he's going to come to the middle and whether republicans will do that, we can actually get some real progress, not only on jobs, but on the deficits. i think it could be serious

gridlock or we could go the other way, i don't think we know the answer to that yet. i think if he demonizes john boehner, it could be harder to work with him. john ridley, you had said before it could make president obama go back to the center? >> well, i think it has to make him go back to center, i agree with david on that. there's a possibility there's going to be a real narrow margin, a real even split between the house and senate come midterm. i can't see anything but gridlock going on. there's a lot of fight ahead about what to do with this economy. and quite frankly, i'd rather see more of a republican majority to give them an opportunity to do what they're going to do, make president obama the arbitrator with the veto, and see where the country goes. a narrow majority, that's nerve wracking for me. i'm sorry. >> thank you. we'll continue this as our

political coverage continues all the way through to the midterms. hundreds of political ads on the airwaves we know you don't want to sit through them all or most of them. there are some you should know about. tom foreman joins us. >> you talked about it at the top of tonight's program, all the big money that's out there corrupting the political process, that's always a complaint. keeping them honest, we are witnessing just what you said, ads on track to break all of the records this fall. and we're seeing wild messages as everybody elbows for attention, including one from mike weinstein. take a look. ♪ ♪ mike mike weinstein ♪ we can't hide from him

>> it's really kind of catchy in its own way. we noticed some real trends, and the first one is guns. l over republican and democratic candidates are toting firearms, clearly they're selling a message of self-reliance, americana. look at pam gorman, a congressional candidate in arizona. >> this year a lot of folks think this is our best shot at changing congress. of course, that all depends on the caliber of our candidates. meet pamela gorman, candidate for congress. conservative christian and a pretty fair shot. >> maybe not. she was beaten by the -- in the republican primary. she needs to work on that more, but that's the kind of message we're seeing on guns. >> mike weinstein, i thought the guy singing was mike weinstein. >> no. >> there's quite a dichotomy between them.

>> kind of jarring, he's just sitting there. >> the democrats are facing the sharpest fire in this campaign. how are they responding in terms of ads? >> they're responding with political amnesia, anderson. basically what they're doing, they're acting like their party is not in charge in d.c. or that they don't know they belong to that party. think about this, more than 200 congressional democrats voted for health care reform, and we have not been able to find one ad since april mentioning that in their political ads. instead, many like joe donnelly in the swing state of indiana are running ads that don't even mention he's a democrat. look at that. >> they're at it again, smearing joe donnelly. the facts, joe donnelly is indiana's most independent congressman. joe opposed president bush's attempts to privatize social security and voted against nancy pelosi energy tax on who's your family? joe donnelly is the independent voice that protects hoosier family.

>> he votes the democratic party line almost 87% of the time. that's a little low for the democrats, but hardly middle of the road. >> independent seemed to be the key word there, leading you to believe he's an independent. republicans not raising the george bush banner either? >> no, not at all. he's a ghost in this campaign. and the republicans, voters don't like much, want to keep it that way. they're very happy to mention president obama, because they think he is a milestone around the neck of every democratic candidate, like the contender for governor in georgia. >> one man ruled with an iron fist, giving us politics and laws we did not want. and did not support. think we're talking about barack obama? we're not. we're talking about former gornor roy barnes. can georgia really afford more of the same? >> in fact the democrat barnes

is running away from the president and openly criticizing some of his white house policies, that's a little flavor of what's going on out there right now. it's unbelievable, but we're going to keep an eye on all of ese s from here on out. fact checking the claims, keeping them honest. >>breaking news, the latest on hermine coming ashore right now. jacque jeras tracking it for us. attorneys general in 17 states target craigslist. ♪ [ male announce] giving up cigarettes can take more than willpower alone. but today's a new day. for many, smoking is a treatable medical condition.

so talk to your doctor about prescription treatment options and support. and this time, make it your time. about prescription treatment options and support. hi, ellen! hi, ellen! hi, ellen! hi, ellen! we're going on a field trip to china! wow. [ chuckles ] when i was a kid, we -- we would just go to the -- the farm. [ cow moos ] [ laughter ] no, seriously, where are you guys going? ni hao! ni hao! ni hao! ni hao! ni hao! ni hao! ni hao! ni hao! ni hao! ni hao! ni hao! ni hao! [ female announc ] the new classroom. see it. live it. share it. on the human network. cisco. built with quality and backed with the best coverage in america including a 100,000 mile powertrain warranty. that's 40,000 more miles than ford. chevy silverado half-ton. a consumers digest best buy and the most dependable, longest lastinfull-size pickups on the road. now get 0% apr for 72onths

on 2010 silverado half-ton models with an average finance savings around $5,800. where banks competed to save me a boatload of money on my mortgage, that would be awesome. sure, like that'll happen. don't just think about it -- spend 10 minutes at lendingtree and save up to $258 a month. with the best decongestant. my choice is clear. claritin-d. nothing works stronger, faster or longer for allergy congestion relief without drowsiness. get claritin-d at the pharmacy counter. live claritin clear. my joints ache so d, i wake up in pain every day. i want to know why. i want to know why my hair is falling out. how did this happen? how did this happen? a little pain in my knee. that's how it started. that's how it started, this rash on my face. now it's like my body is attacking me. i want answers. announcer: when you don't ve the right answers,

it may be time to ask your doctor the right question. could i have lupus? breaking news to bring you up to speed on, hermine made landfall just a short time ago, 30 miles south of the texas/mexico border. texas has been feeling the impact of the storms outer bands all day. jacque what's the late et? >> the center of circulation is over land, weakening. already landare back down to 60 miles per hour.

the problem that we have tonight is that people are going to bed and we still have a big threat of getting damaging winds across southern parts of texas. power outages, trees down are a good possibility. and you can see the red box, that's a tornado watch. any time we get a land falling tropical system in the right-hand side of the storm, we have a threat for rnados. they going to be ongoing for tonight about flash flooding can be expected. we're getting reports on south padre island, several inches of rain has fallen the feeder bands are the ones we'll be watching for some of this rotation. we think texas for the most part can handle the storm. but whatappens over the next 24, 48 hours is of concern. the storm will make its way to the north. locally heavy rainfall can be expected as much as 10 inches. you can see the flood watches in effect from the red river valley all the way down to the gulf coast.

we can see rainshowers for corpus christi tonight and major river flooding may be possible for many rivers in central texas by the end of the week. the flood situation will be ramping back up, anderson? >> thanks. in northern chile 33 miners trapped deep under ground appear to be doing well. a set back in one of the rescue plans. a cable temporarily stopped one of two drilling operations on their way to reach the men. they've been confined to an area about the size of a studio apartment for more than a month. van der sloot has said he extorted money from natalee holloway's family because he wanted to get back at them for making his life tough.

he's facing separate murder charges in peru. he was charged with extortion in the u.s. in june after an fbi sting. and the daredevil known as skyscraper man has struck again. kgo is reporting that dan goodwin climbed a 58 floor millennium building in downtown san francisco in just over three hours. after reaching the top he was arrested. now -- >> what's the point -- >> that's what i was going to ask you. i mean, i know, i'm sure you figured out by now i'm not from these parts. just a thought. i needed you to shed some light. >> would this go on in the u.k. >> no, because in the u.k. if you're in your 50s, you would be sitting by the fire reading dickens and drinking hot cocoa. still ahead, a major new twist in the craigslist sex ad crackdown.

17 state attorneys general, they're being censored and unfairly targeted. we'll talk to jeffrey toobin as the cnn lawyers uncover the controversy. the church that plans to burn korans on 911. if they do it they'll be endangering our troops.

welcome to progressive. nice calculator. i'm just trying to save money on my car insurance. you know, with progressive, you get the option to name your price. is that even possible? uh, absolutely. trade? and i still get great rvice? more like super great. oh, yohave a message. "hello." calculator humor. i'll be here all wk. i will -- that was my schedule. the freedom to name your price. now, that's progressive. call or click today.

in crime & punishment. a new development in a story we've been covering for weeks.

craigslist shut down their adult services section over the weekend. they say they're being unfairly targeted. they don't do any screening at all, they say they do screen ads. craigslist says it screens all adult services ads appearing on their website to underaged prostitution or illegal activities. it's believed that adult services makes up a third of craigslist revenue a year. amber ly wanted to see h much they really screened their ads. she tracked down craig newmark and asked him how the ads got posted if the company screens them. he cut the interview short and claimed she ambushed him unfairly.

17 states attorney general demanded craigslist close its adult services section. as we said, this weekend they in fact shut it down. amber lyon joins me now along with jeffrey toobin. you've been reporting on this a lot, craigslist has not appreciated your reporting on this. >> no. >> to me this boils down to, if craigslist had simply said, yes, we have escort ads just like every classified -- lots classified sections in newspapers and plenty other websites out there, and there's nothing wrong with it, it's not illegal for us to have these ads, there would be no story, correct? >> that's right. the whole point was to keep craigslist honest. they were making bold statements to the public saying they were tirelessly screening these ads, walking along with law enforcement and key nonprofits. we put a check on what they were saying they were doing. not focusing on their legal

responsibility in this story. in some cases, what they said they were doing and reality weren't matching up. >> why couldn't they just screen every ad. i understand they make a lot money, there's only like 30 something employees. do they just not have enough employees screen something. >> that's what some victim's advocates are saying. craigslist should take some of this money they're making, tens of millions of dollars off these ads and hire more people. focus a little more on this, another thing victims' advocates and the attorneys general they don't feel that craigslist is working tirelessly with key nonprofits to come up with solutions. we put code words in there, sweet, innocent, new girl. clear code words that would indicate that could be a minor, yet those words were able to get through on craigslist's site. >> plenty of people would say they're sweet and innocent in a

personal ad. that doesn't mean the person is under age. >> well, according to these victims' advocates this is a land of code words. they're not going to come out and say, this is an underaged girl offering sex. all these ads are written in code words and it's really important for craigslist to be paying tension to those words when they're screening these ads. >> craigslist says we do more than any other website out there. all these attorneys generals are complaining, but they're not complaining about their local paper which has classified escort ads? >> they have a point. but it doesn't make what they're doing right. the fact that other people may be profiting from this business. craigslist was profiting from it too. because they're a national -- and big national name -- >> they say they're only charging because law enforcement asked them to in order to limit access to the site. >> that's probably true. that was part their --

>> had they just said, yeah, we have escort ads, so does everybody else, legally they would be fine. >> exactly. >> there wouldn't be a story. >> a lot of the situation is because the way the law is set up now, the internet as far as this is concerned is treated much like the phone company. in the sense that if a john and a hooker set up a transaction through the telephone, nobody thinks verizon or at&t is libel for the transaction. the law makes internet service providers and websites like the phone company there, they are just a cutout and not legally liable. but craigslist decided to take on this responsibility and that's where the problem started. >> are they being punished for -- are they being unfairly targeted? >> i don't think it's unfairly. these attorney generals are using the power of embarrassment, the power of moral persuasion to get crgslist to change its behavior. if craigslist really wanted to

force them to sue, which they han't done. the attorneys general might well lose. >> now, others -- i mean, craigslist has raised questions about some these victim's advocates, you talked to them saying, they have a motivation to say there's huge amounts of child prostitution on line. do we know anything about actual numbers of children who have been traffic on craigslist or on other sites? >> we did get some new figures, and for the national center for the missing and exploited children. they say since 2006 they have been able to rescue 54 missing children just by comparing the photos on the missing person's ad to the photos on the sex ads on the craigslist adult services section. this is happening, but it is hard to prove. >> a lot of those years are before craigslist said they started -- i think it was in 2009 they said they were actually starting to monitor, so it's really only in the last

year or two, they say they made the promise they've been monitoring, right? >> yeah, that is correct, anderson. >> so we have a text 360 question from an anonymous viewer. what's the point in replace ing the link with censored? have they commented on why they changed the name to censored? >> they haven't commented to us. they're trying to make a statement he, they feel like they're being unfairly targeted and wh they're doing is not illegal and they want to protect their first amendment rights here, anderson. >> first of all, they're not being censored, they're censoring themselves. the government has done nothing legally here except express disapproval. that's not censorship.

>> thanks. what general petraeus says about a church that plans to burn koran's on september 11th. and a shark caught in a river. thank you for calling usa prime credit. my name is...peggy. what is proem, please? peggy? sure...well...suddenly it looks like i'm being charged a $35 annual fee. yes? tell me it's a mistake. yes? are you saying yes or are you asking yes? yes? peggy? peggy? anncr: want better customer service? switch to discover. ranked #1 in customer loyalty. it pays to discover.

a number of other stories, isha joins us again with a 360 news bulletin. >> afghanistan is criticizing a church's promise to burn the

koran on september 11th. the church could endanger the troops in afghanistan if it goes through with the controversial event. president obama in milwaukee, wisconsin this labor day, unveiling a $50 billion plan to crea jobs by rebuilding, and modernizing roads, rails and airport runways. a scary sight in the potomac river. fishermen catching eht foot long bull sharks. at least two have been reeled in. bull sharks are considered by many experts to be the world's most dangerous shark, because they can tolerate fresh water and swim up rivers. that's some serious bragging rights, those fishermen have got now, don't you think? >> there's a lot of sharks in the potomac, i guess.

in the potomac area. i like the dog sniffing the shark too. i felt bad for the shark in the freezer, it's sort of sad and pathetic. >> don't feel too badly for the shark. >> i think they're misunderstood. isha, thank you. starting at the top of the hour, bimoney and congress. nighttime nasal congestion meant, i cldn't breathe right. i couldn't sleep right. next day it took foreve to get going. night after night, i sat up. sprayed up. took a shower... or took a pill. then i tried drug-free breathe right. and instantly, i breathed better! i slept better. i felt...better. thank you, breathe right! [ male announcer ] breathe better, sleep better, feel better. now try breathe right for free... at breatheright.com. [ woman ] it's my right to breathe right. isn't it your right, too?

when you approach things from a different perspective, you don't end up with just another car. you end up with the all-new saab 9-5 luxury sport sedan.